There are certain obvious factors that affect how much your auto insurance premiums will be. For example, regardless of who you are, your driving record will affect how much you pay monthly for your insurance. The better it is, the less of a risk you are perceived to be and the less you are charged and vice versa. Besides that, there are other factors that affect what kind of auto policy you will have and what provisions are included in the same.
Age
Age is a factor that all insurance agencies consider. There are specialized policies tailored towards college students and they mostly offer the minimum coverage as required by state laws. Individuals that have not yet reached the age of twenty five are considered by many insurers to be at a higher risk of being involved in accidents than those that have.
Since the average driving age is 16 years, it is easy for a prudent minor to gain decent driving experience while they are still covered under their parent's policies. That way, when they turn 18 or branch out on their own, they have a leg to stand on. Insurers may adjust the premiums of a minor or individual under the age of 25 to reflect their good driving record. If they are also certified defensive drivers, their policies may also be adjusted downwards.
The age of 25 is sometimes referred to as the quarter life. You have probably heard of people going through a midlife crisis. A similar occurrence happens at 25 though probably not as severe in magnitude as the midlife. At that age, most young adults are either just starting out on their first major jobs or planning major life changes such as marriage or having children and it can be a period of reflection and uncertainty. One of the major perks that come with turning 25 is an automatic reduction of your premium rates on your 25th birthday. Most insurers have this provision in place.
Your job
Believe it or not, the work you do can affect the amount of money you fork out every month for auto insurance. Studies have shown that people whose professions are more technical or scientific in nature tend to have lower premiums than other professions. This is because they are perceived to be more technologically savvy and meticulous in their driving. Businessmen, sales agents and lawyers tend to pay higher premiums because their jobs involve lots of movement and may be highly stressful. If your profession requires that you are on call, you may be charged higher premiums as the likelihood of you answering your cell phone while driving and thereby distracting you is high.
Where you live
Your geographical region may affect your premiums. Typically, the more you rely on private means of transportation, the higher the chances that you will be involved in an automobile accident. Areas that have more public transportation options tend to have lower premiums than those that do not.